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Alvora with partner to build Poland-Lithuania gas pipeline

Christian Fernsby |
Vilnius-based gas pipeline and engineering network construction company Alvora and Siauliu Dujotekio Statyba (Siauliai Gas Pipeline Construction) have been awarded the contract to build the Lithuanian part of the Gas Interconnector Poland-Lithuania (GIPL) for 96.6 mln euros, informed LETA/BNS.

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The board of Amber Grid, Lithuania's gas transmission company, approved the signing of the contract with a group led by Alvora, and the contract still need the approval of the company's shareholders on August 28, and only then the contract will be signed, with the construction expected to begin in the fall.

Amber Grid CEO Saulius Bilys says thee tender, which has taken more than a year, was a very significant stage of the project.

The tender winner was announced after the Lithuanian government's special commission assessing deals by strategic companies gave the green light for the signing of the contract with Alvora.

"The permission was given to conclude the deal with very clear recommendations on possible risk management measures. This means ensuring smooth and timely implementation of the project," Alminas Maciulis, the vice chancellor of the Lithuanian government told.

Owned by three private individuals, Alvora is present in the construction market in Belarus and Russia's Kaliningrad region, where it has subsidiaries named Alvora–Bel, Alvora–Balt and Spetsmontazhstroy.

Alvora was involved in the construction of Lithuania's main gas transmission pipelines and the Klaipeda LNG terminal's gas pipeline.

Kaunas-based KRS has said it submitted the lowest price offer, at around 91 mln euros including VAT, but was rejected as not meeting national security criteria because it bid jointly with Belarus' pipeline construction company Beltruboprovodstroy.

In late July, Amber Grid signed a contract worth 31.9 mln euros, including VAT, with Poland's Izostal for the purchase of steel pipes for the Gas Interconnector Poland-Lithuania (GIPL).

Amber Grid is implementing the GIPL project together with Poland's gas transmission system operator Gaz-System.

The 165-kilometer gas transmission pipeline will be built from the Jauniunai compressor station in Sirvintos District to the Lithuanian-Polish border in Lazdijai District.

The interconnection is planned to come online in late 2021.

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